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Industrial Policy on the Rise. Comments by Laurids S. Lauridsen Roskilde University. Normalizing industrial policy? (1).

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industrial policy on the rise

Industrial Policy on the Rise

Comments by

Laurids S. Lauridsen

Roskilde University

normalizing industrial policy 1
Normalizing industrial policy? (1)
  • “The necessary transition to a more sustainable, inclusive and resource-efficient economy will have to be supported by both horizontal and sectoral policies at all levels and will require strengthened European governance and social dialogue” [EC COM(2010)614, 4]
  • ”The present round of industrial policy will no doubt produce some modest successes – and a crop of whopping failures” (The Economist August 7th 2010, 56)
normalizing industrial policy 2
Normalizing industrial policy? (2)
  • “Encouraging broad-based and inclusive growth does not imply a return to government-sponsored industrial policies, but instead puts the emphasis on policies that remove constraints to growth and create a level playing field for investment”

(The World Bank, “What is Inclusive Growth, 2009, 1)

the core argument
The core argument
  • The mainstream developmentdiscourse
  • Trade liberalisation (DDA) and FDI
  • Comparative advantage following approach
  • Good Governance
  • Soft individualised issues -
    • Property rights (de Soto)
    • MDG
    • Micro-credit (Yunus)
  • A new (old) development discourse
  • Bring production back in
  • PONEs, domestic savings and collective efforts
  • Strategic industrial policy – market-defying interventions
  • Developmental state (balanced SBRs)
  • Add-on issues:
    • Inclusionary growth
    • human dev., low-carbon and technological capabilities
    • ideas, politics
issues for discussion
Issues for discussion
  • A difference?: Wade on ”self-discovery” and ”followership” versus Chang on market-defying interventions
  • SBRs – any room for integrating “a labour point of view”?
  • Feasibility?
    • What are the lessons for countries with low state capacity?
    • What the role of “the politics” of industrial policy making?
  • Changing global conditions
    • Global production networks/global value chains
    • The organisational decomposition of the innovation process
    • The shrinking policy space (WTO and bilateral trade/investment agreements)
  • Does China make a difference – Africa? The post-2000 experience?
sbr relations centralised versus decentralised
SBR relations – centralised versus decentralised
  • Start-up versus Catch-up industrialisation
  • Diversification, Deepening and Upgrading
  • Market failure, state failure and network failure